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So it is best to convert to grayscale before converting to 1-bit depth?

I don't honestly know, to be honest. I'm just used to doing things one step at a time. Kind of like the Unix philosophy where you have one tool to perform each intermediate task in a composite process instead of the Windows "one tool does everything including the kitchen sink" approach. Old habits die hard

So it is best to convert to grayscale before converting to 1-bit depth?

I don't honestly know, to be honest. I'm just used to doing things one step at a time. Kind of like the Unix philosophy where you have one tool to perform each intermediate task in a composite process instead of the Windows "one tool does everything including the kitchen sink" approach. Old habits die hard

You should use the netpbm (or GraphicsMagick or ImageMagick...) command line utilities then

You can right-click copy an image from your browser, and crop, adjust brightnesses (including per color brightness), and convert to grayscale (gives a good idea of what the final image will look like), then scale.

To convert to 1-bit (with dithering), make sure you have an image that is already the correct size, and go through the following menus:
Image ⇒ Mode ⇒ Indexed ⇒ Use black and white (1-bit) pallette.
Then from the dropdown menu, select Floyd-Steinburg (normal) and click convert.